[credit provider=”Wikimedia Commons” url=”http://en.wikipedia.org/wiki/File:Teixeira_dos_Santos-2.jpg”]
Portugal’s Finance Minister Fernando Teixeira dos Santos just admitted that his country needs a bailout, according to Negocios Online. In written comments in response to questions from the paper, the finance minister says (Google Translation):
I think it is necessary to refer to available funding mechanisms in the European context as appropriate to the current political situation. This will require also the involvement and commitment of major forces and political institutions.
Portugal has seen its bond yields widen dramatically today, after this morning’s debt auction resulted in the sale of 12-month bonds yielding 5.9%. Compared to the costs of borrowing from the EFSF, the EU-IMF bailout fund, and it looks ridiculous. Those costs are 5.7% over 5-years.